Loans slump may point to house price fall
Our Country is currently doing 50,287 loans a month per article above. These include all types of home loans, purchases, refinances, construction loans, HELOC’s, etc. This does not mean 50,287 homes have been sold or taken off of the market.
Our same Country is losing 290,631 homes a month to foreclosure. These numbers do not include the hidden inventory nor does it include all the mortgages that will adjust in 2010, 2011, 2012 causing the foreclosure number to go up and removing even more potential buyers. I always go back to the fact we were at an all time high of homeownership in our country’s history before the bust. Where do we plan to find more buyers? We have lost close to 5 million buyers because they lost their homes to foreclosure. Minimum lending requirements require you to be 3 years removed from a foreclosure discharge date before they will be able to buy again.
A LOT OF INVENTORY WITH VERY FEW BUYERS!
SUPPLY AND DEMAND. IT’S A VERY SIMPLE NUMBERS GAME.
HOME PRICES WILL CONTINUE TO FALL WAY BELOW WHERE THEY CURRENTLY ARE FOR THE SIMPLE FACT THERE ARE NO BUYERS TO REMOVE THE SUPPLY.
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